Commodity procurement management
Discover why StoneX is a global leader in commodity procurement
We understand your whole business
In our experience, the most successful companies take a holistic approach to managing their commodity exposure. A century of working with commodity clients and our active involvement in commodity supply chains has taught us almost every aspect of your business.
We combine sophisticated market risk management, commodity expertise, infrastructure and working capital to address your needs.
We work hand-in-hand with our clients
StoneX specialists understand supply chain procurement management challenges and leverage extensive market access and unapparelled expertise to help food, livestock and industrial buyers of commodities overcome them. Specifically, we work hand-in-hand with clients to:
- Set and achieve budget goals
- Protect margins from commodity price volatility
- Analyze and improve logistics and storage
- Develop and execute short- and long-term procurement strategies
- Defend and expand market share by reaching further into the supply chain
We connect our clients to the commodity markets that impact their costs
StoneX connects clients to extensive commodity market expertise, starting with a comprehensive market intelligence offering that includes dairy, grains, meats and livestock, softs, cotton, energy and metals. Partnerships are the supply chain’s lifeblood, and we have spent decades building and evaluating supplier relationships in order to effectively and efficiently manage our clients’ supply chain business operations.
We are commodity pricing experts
Successful purchasing decisions require comprehensive, timely data and analysis. Our team of experienced market professionals will dynamically assess market conditions and utilize a full range of strategies to obtain the best price for our clients. Let the StoneX professionals go to work and provide you with tools and platforms to track commodities pricing and outlook.
From sourcing to settlement
StoneX offers a flexible, yet stable commodity procurement management system tailored to your business needs. We simplify the process by offering the following services:
- Risk management
- Hedge strategy
- Market intelligence
- Strategic sourcing
- Data management & analytics
Lessons from the Farm: US Food and Dairy
Visit KJA Family Farms with StoneX’s Kyle Schrad, Vice President of Global Dairy and Food Operations, FCM-Division, as he discusses how lessons learned as a boy working on his family farm inform his understanding of how a boots on the ground perspective fosters relationships and trust with his clients.
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FAQ
What is procurement in supply chain management?
Procurement is the process of obtaining or purchasing goods or services, typically pertaining to business purposes. This process requires preparation, solicitation and payment processing. Procurement involves strategy and competitive bidding, and StoneX professionals are experts in procurement management.
How does commodity pricing work?
Commodity pricing is determined by fundamental factors and supply and demand. The commodity marketplace is extremely volatile because factors such as economic events, environmental changes, consumer preferences and governmental policies can all trigger waves of buying and selling, and affect the cost of certain commodities. Supply and demand can also play a huge role in commodity market pricing because when supply is low, demand is high, which leads to higher prices. When supply is high and demand is low, then prices drop.
Our market expertise, advanced platforms, global reach, culture of full transparency and commitment to our clients’ success all set us apart in the financial marketplace.
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Globality
With access to 40+ derivatives exchanges, 180+ foreign exchange markets, nearly every global securities marketplace and numerous bi-lateral liquidity venues, StoneX’s digital network and deep relationships can take clients anywhere they want to go.
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Transparency
As a publicly traded company meeting the highest standards of regulatory compliance in the markets we serve; our financials and record of accomplishment are matters of public record. StoneX’s commitment to “doing the right thing over the easy thing” sets us apart in the industry and helps us build respect, client trust and new partnerships.
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Expertise
From our proprietary Market Intelligence platform, to “boots on the ground” expertise from award-winning traders and professionals, we connect our clients directly to actionable insights they can use to make more informed decisions and achieve their goals in the global markets.
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The subsidiaries of StoneX Group Inc. provide financial products and services, including, but not limited to, physical commodities, securities, clearing, global payments, risk management, asset management, foreign exchange, and exchange-traded and over-the-counter derivatives. These financial products and services are offered in accordance with the applicable laws in the jurisdictions in which they are provided and are subject to specific terms, conditions, and restrictions contained in the terms of business applicable to each such offering. Not all products and services are available in all countries. The products and services offered by the StoneX Group of companies involve risk of loss and may not be suitable for all investors. Full Disclaimer.
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StoneX Commodity Solutions, LLC (“SXCS”), a subsidiary of StoneX Group Inc., trades in a variety of physical commodities, and offers customers services to help manage the risks associated with their physical product. Trading over-the-counter and exchange-traded derivatives is not suitable for all investors and involves substantial risk. This material does not constitute investment research and does not take into account the particular investment objectives, financial situations, or needs of individual clients or recipients of this material. You are directed to seek independent investment and tax advice in connection with derivatives trading.
© 2023 StoneX Group Inc. All Rights Reserved.
StoneX Financial Pte. Ltd. ("SFP") (Co. Reg. No 201130598R) is regulated by Monetary Authority of Singapore and holds a Capital Markets Services Licence (CMS100476) for Dealing in Securities, Collective Investment Schemes, Exchange-Traded Derivatives Contracts, Over-the-Counter Derivatives Contracts, and Spot Foreign Exchange Contracts for the Purposes of Leveraged Foreign Exchange Trading, is an Exempt Financial Advisor under the Financial Advisors Act 2001, and is a Major Payments Institution (PS20200625) under the Payment Services Act 2019 for Cross Border Money Transfers.
StoneX Financial (HK) Limited ("SHK") (CE No.: BCQ152) is regulated by the Hong Kong Securities and Futures Commission for Dealing in Securities and Dealing in Futures Contracts.
StoneX APAC Pte. Ltd. (“SAP”) (Co. Reg. No 200616676W) is regulated as a Dealer (PS20190001002) under the Precious Stones and Precious Metals (Prevention of Money Laundering and Terrorism Financing) Act 2019 for purposes of anti-money laundering and countering the financing of terrorism. SAP is an “Approved International Trading Company” authorized to act as a “Spot Commodity Broker” under the Commodity Trading Act.
SFP acts as an appointed agent for SFL's payment services business.